00 SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 30 01 "An Act relating to the Alaska teacher recruitment loan repayment program; and 02 providing for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. The uncodified law of the State of Alaska is amended by adding a new section 05 to read: 06 FINDINGS; PURPOSE. (a) The legislature finds that a shortage of qualified teachers 07 in the public elementary and secondary schools exists in this state. 08 (b) The purpose of this Act is to establish the Alaska teacher recruitment loan 09 repayment program to provide financial incentives through the repayment, in whole or part, 10 by the state of education loans for teachers upon the teacher's being first hired at a public 11 elementary or secondary school in the state. 12 * Sec. 2. AS 14.07.170 is amended by adding a new subsection to read: 13 (c) The board shall establish standards for the Alaska teacher recruitment loan 14 repayment program under AS 14.43.530 - 14.43.590, certify eligible applicants under 01 that program, and perform other duties assigned to the board under the program, 02 including the adoption of necessary regulations. 03 * Sec. 3. AS 14.42.030(b) is amended to read: 04 (b) The commission shall 05 (1) administer the financial aid and interstate education compact 06 programs under AS 14.43.091 - 14.43.920 and 14.43.990, and AS 14.44; 07 (2) administer the provisions of AS 14.48 concerning regulation of 08 postsecondary educational institutions; 09 (3) resolve disputes under a consortium or other cooperative agreement 10 between institutions of public and private higher education in the state; [AND] 11 (4) serve as the state agency required under 20 U.S.C. 1001 - 1155; 12 and 13 (5) perform duties assigned under AS 14.43.530 - 14.43.590 14 (Alaska teacher recruitment loan repayment program). 15 * Sec. 4. AS 14.42.040 is amended by adding a new subsection to read: 16 (c) The executive director of the commission shall administer the Alaska 17 teacher recruitment loan repayment program under AS 14.43.530 - 14.43.590 in 18 accordance with standards set by the commission and by the board. 19 * Sec. 5. AS 14.42.295(a) is amended to read: 20 (a) The board may elect to pay the state a return of contributed capital, or a 21 dividend, for each base fiscal year that the corporation's net income equals or exceeds 22 $2,000,000. The payment may not be less than 10 percent nor more than 35 percent, 23 as approved by the board, of the corporation's net income for the base fiscal year, and 24 is subject to the provisions of any applicable bond indentures of the corporation. If a 25 payment is authorized under this section, payment must be made available by the 26 corporation before the end of the fiscal year in which payment has been authorized. 27 The corporation shall notify the commissioner of revenue when the amount of the 28 payment authorized under this section is available for appropriation. The money 29 made available under this subsection may be appropriated for the Alaska teacher 30 recruitment loan repayment program under AS 14.43.530 - 14.43.590 or for any 31 other public purpose. 01 * Sec. 6. AS 14.43 is amended by adding new sections to read: 02 Article 9A. Alaska Teacher Recruitment Loan Repayment Program. 03 Sec. 14.43.530. Program established. (a) There is established the Alaska 04 teacher recruitment loan repayment program to provide financial incentives for 05 qualified teachers to teach in the public elementary or secondary schools in this state 06 through the repayment of education loans. 07 (b) The program is not a financial obligation of the corporation. 08 Sec. 14.43.540. Alaska teacher recruitment loan repayment program 09 account. (a) The Alaska teacher recruitment loan repayment program account is 10 created in the general fund. The account shall be used to provide financial awards for 11 the repayment of education loans under the program and to pay for the costs of 12 administering the program. 13 (b) The account includes money that the legislature appropriates from the 14 Alaska Student Loan Corporation's dividend to the state under AS 14.42.295 and the 15 interest and earnings on money in the account. If money available is inadequate to 16 finance the requests from eligible teachers under this program for a fiscal year, 17 additional money may be requested from the general fund and appropriated to the 18 account for the program. 19 Sec. 14.43.550. Administration. (a) The Alaska teacher recruitment loan 20 repayment program shall be administered by the executive director of the commission 21 using 22 (1) the eligibility and other criteria of the program established by the 23 board under AS 14.07.170(c); and 24 (2) the financial management standards for proper administration of 25 the Alaska teacher recruitment loan repayment program account as established by the 26 commission. 27 (b) After consultation with the board, the commission may adopt regulations 28 to carry out its duties and the executive director's duties under the program. 29 Sec. 14.43.560. Eligibility criteria. (a) The board shall establish in 30 regulation the eligibility criteria and certification procedures for the program. The 31 criteria established must include the following: 01 (1) the applicant was first hired as a classroom teacher by a district in 02 this state on or after July 1, 2003, and has not previously been employed as a 03 classroom teacher in another district; 04 (2) the applicant has the required certificates and endorsements to 05 lawfully teach in the subject area in the public schools of this state; 06 (3) the applicant shall agree to fulfill any requirement of the program, 07 including any required completion of a length of classroom teaching in a district; 08 (4) the applicant has outstanding education loans from a recognized 09 entity to be repaid under the program; 10 (5) if the applicant does not fulfill obligations under the program, the 11 applicant shall repay the money paid under this section and may not receive further 12 loan repayments under the program. 13 (b) The board shall distribute information regarding the program 14 (1) to districts in the state; and 15 (2) to others upon request. 16 Sec. 14.43.570. Conditions and limitations on loan payments. (a) The total 17 amount of financial awards for repayment of educational loans may not exceed 18 $10,000 in a lifetime for a teacher. 19 (b) A financial award must be conditioned on the availability of money for the 20 program. The executive director shall monitor the outstanding financial awards made 21 under the program to ensure the adequacy of the balance of the account to meet 22 program needs. If the executive director finds that the balance of the account is 23 insufficient to pay for existing awards and incur additional obligations to new 24 applicants, the executive director shall advise the commission and the board. Until the 25 commission and the board determine the account is sufficient to incur additional 26 obligations, the executive director shall 27 (1) prorate the money available in the account among all existing 28 award recipients; and 29 (2) suspend the acceptance of new applications and the processing of 30 pending applications under the program. 31 (c) The provisions of AS 14.43.920 apply to the repayment of a loan under the 01 program. 02 Sec. 14.43.590. Definitions. In AS 14.43.530 - 14.43.590, unless the context 03 otherwise requires, 04 (1) "account" means the Alaska teacher recruitment loan repayment 05 program account established in AS 14.43.540; 06 (2) "board" means the state Board of Education and Early 07 Development; 08 (3) "district" has the meaning given in AS 14.17.990; 09 (4) "executive director" means the executive director of the 10 commission; 11 (5) "program" means the Alaska teacher recruitment loan repayment 12 program. 13 * Sec. 7. The uncodified law of the State of Alaska is amended by adding a new section to 14 read: 15 TRANSITION: REGULATIONS. Notwithstanding sec. 9 of this Act, the state Board 16 of Education and Early Development and the Alaska Commission on Postsecondary 17 Education may immediately proceed to adopt regulations necessary to implement their 18 respective duties under this Act. The regulations take effect under AS 44.62 (Administrative 19 Procedure Act), but not before July 1, 2003. 20 * Sec. 8. Section 7 of this Act takes effect immediately under AS 01.10.070(c) 21 * Sec. 9. Except as provided in sec. 8 of this Act, this Act takes effect July 1, 2003.